Rebound in U.S. Consumer Prices Shows Inflation Stabilizing

A rebound in U.S. consumer prices in April signals inflation is stabilizing, supporting the case for Federal Reserve policy makers to raise interest rates, Labor Department figures showed Friday.

Businesses are regaining some pricing power as household spending grows and improving global demand helps to stabilize commodity costs, adding to signs that inflation is on track to meet or possibly exceed the Fed’s goal in coming months. The central bank’s preferred gauge of inflation, a separate figure based on what consumers purchase, exceeded its 2 percent goal in February, though some Fed officials focus on the measure excluding food and energy, which remains below their target.